Worldwide Depression

American Depression RECAP  October 29, 1929  stock market crashes on Black Tuesday  businesses, investors, people (who didn’t invest), & banks all suffered

American Depression New Deal  created jobs  spent more money on welfare & other relief  regulated banking & stock market Smoot-Hawley Tariff Act (1930)  heavy taxes on goods imported into US  encouraged buying American goods

“Black Sunday” documentary clip

Great Britain late 1920s  still paying back debts to US had high interest rates, causing spending to decrease & unemployment industrial areas were more affected unemployment = 2.5M by end of 1930

Great Britain 1926  workers upset  general strike: strike involving all or a large number of a nation’s workers Parliament passed Trade Disputes Act (1927)  made general strikes illegal

France WWI destroyed farmland, forests, villages, & cities and casualties were numerous government = bankrupt after war factories, railways, & canals couldn’t be rebuilt

France unemployment = high  led to civil unrest initial impact of Great Depression got worse

“German Hyperinflation” video

Germany paying back reparations for WWI  as Treaty of Versailles ordered faced severe inflation  money was practically worthless

INFLATION!! If you print more money than the amount of gold you have, the money becomes less valuable Hyperinflation  government prints more money  businesses raise prices  government prints more money  businesses raise prices  etc.  eventually money becomes worthless

Canada hit hard in the late 1920s about 30% of workforce unemployed by later 1930s unemployment rate was around 12% until WWII

Australia wages decreased by 1931, unemployment was about 32%

South America US had been heavily invested in South American economies Chile, Bolivia, & Peru were especially hurt by depression

Netherlands not only was the economy suffering, like in the US, but there were also internal factors making it worse